Noble representatives to meet SIAS to discuss shareholder’s concerns

SINGAPORE — Representatives of Noble will meet with the Securities Investors Association Singapore (SIAS) today after the investor rights watchdog yesterday sought clarification from the commodities firm over allegations it had failed to address shareholders’ concerns at an annual general meeting on Friday.

In a statement yesterday, SIAS president and chief executive David Gerald had said it received feedback that Noble Chairman Richard Elman was defensive and avoided questions from shareholders about Iceberg Research and Muddy Waters’ accusations of improper accounting at the Singapore-listed company.

A Noble spokesperson said last night: “We received the overwhelming support of our shareholders and the Iceberg issue is now finished. Our focus is firmly on running the business to achieve our goal of becoming the leading mover of physical commodities in the world.”

At the AGM, all of Noble’s resolutions were passed, including 99.92 per cent of votes for the company’s financial statements in 2014. Iceberg had questioned Noble’s accounting and governance practices in a series of blog posts since February, triggering a sharp fall in its shares that has since wiped off over S$2 billion in market value. United States-based short seller Muddy Waters attacked Noble two weeks ago, questioning the commodities firm’s cash flow and management.

Noble has repeatedly rejected Iceberg’s allegations and started legal action in Hong Kong. It is seeking an injunction to prevent the publication of what it said was false information, as well as damages for conspiracy to injure the company. Noble has also denied Muddy Waters’ allegations.

The 90-minute AGM was punctuated by acrimonious exchanges between Mr Elman and minority shareholders. Mr Elman dodged questions about Noble’s accounting, with shareholders describing him as “unnecessarily defensive” and “in denial mode”, The Business Times reported.

Mr Gerald said: “Chairmen of meetings must understand that while it is true that the AGM is a statutory meeting and limited by time within a set agenda, they can still address the serious concerns of minority shareholders and not side-step them. The concerns of shareholders were heightened by what these research reports revealed. The chairman could have given comfort to the anxious shareholders by answering in a manner, even briefly, acceptable to them. Much disappointment and anxiety could have been avoided by the chairman hearing out the shareholders. Shutting up the shareholders instead, only creates acrimony.”

The company needs to do a lot more to improve its transparency, said influential shareholder activist Mr Mano Sabnani, who was among those who crossed swords with Mr Elman at the AGM. That would help investor confidence, he said.

Mr Gerald said Noble could have handled the situation by either arranging a closed-door session or meeting concerned shareholders after the meeting to have an informal chat.

“Chairmen and directors of meetings need to adopt a friendly and willing attitude towards their shareholders who are, after all, owners of the company. Where they cannot accommodate the questions, they can easily be firm but polite,” he said.